New mexico mortgage finance authority

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--April 23, 2002

The New Mexico Mortgage Finance Authority, a state instrumentality that issues tax-exempt mortgage revenue bonds, has selected Union Bank of California, N.A., as its trustee for all bond issues in 2002. Proceeds from the bond sales, which could total as much as $150 million for the year, will be used to fund below-market interest rate loan programs for single-family, first-time homebuyers and for developers of affordable multi-family dwellings.

Under the agreement, Union Bank of California's corporate trust group, which administers debt securities for government agencies and municipalities, will monitor cash flow, execute investments and ensure that covenants of indenture are enforced. UBOC has already been working closely with the MFA in preparation for its next bond issue, $30 million for single family home financing, scheduled for April 25.

Linda Thomas, chief financial officer at the MFA, said, "The MFA is particularly interested in automation because we are a very active bond issuer. One of the primary reasons we selected Union Bank of California was the organization's strong electronic reporting capabilities, which will help us streamline our operations and pass along surplus revenue to the people who really need it. UBOC also has the experience necessary to follow the complex redemption provisions for housing bonds."

"This is an exciting opportunity for Union Bank of California to extend its services into the Southwest market," said Vicki Elnick, vice president and manager of Union Bank of California's corporate trust group. "We look forward to working with the New Mexico Mortgage Finance Authority to deliver value to its investors, as well as to promote affordable housing opportunities throughout the state."

According to Elnick, UBOC also serves as the trustee for Oregon's housing finance agency, which provides financial and program support for affordable housing. Overall, UBOC's institutional services and asset management division has more than $140 billion in assets under administration, servicing the institutional and public funds custody, employee benefit trust and corporate trust markets.

The $2 billion MFA provides affordable housing finance through programs ranging from assistance for the homeless, to apartments, to homeownership. Created by the State of New Mexico, the MFA is a fully self-supporting enterprise and receives no state funds for its operations. Since 1975, MFA has provided more than $2.5 billion in affordable housing for families in New Mexico.

Based in San Francisco, UnionBanCal Corporation (NYSE: UB) is a bank holding company with assets of $36.2 billion at March 31, 2002. Its primary subsidiary is Union Bank of California, N.A., the third largest commercial bank in California. Union Bank of California has 244 banking offices in California, 6 banking offices in Oregon and Washington and 15 international facilities. The company's Web site is located at www.uboc.com.